According to the Agency, Administration also analyzes the possibility of converting subsidies that Intel received under the Chips and Science Act of 2022, to the company's shares. Sources acquainted with the case indicate that decisions in this matter have not yet been taken and their details remain unknown. The value of the 10 % Intel share package is currently estimated at around $ 10.4 billion, which almost corresponds to a total of $ 10.9 billion. subsidies that the company received under the aforementioned Act.
The Chips and Science Act, adopted in 2022, was adopted with the intention of regaining the leading position by the United States in global semiconductor production. The act provided for $ 39 billion. for subsidies for American chip producers, of which Intel received the greatest support. I am talking about $ 7.9 billion. for the development of commercial production and $ 3 billion. for projects related to national security.
Despite such substantial support, Intel is struggling with problems and lags behind competition, companies such as TSMC or Korean Samsung. The revival of the “national master” in this industry has become one of the administration's priorities in Washington. President Donald Trump, who in the past criticized the Chips Act and called to repeal it, is currently intensively pressing the renegotiations of the grants granted.
Howard Lutnick, Secretary of US trade, confirmed the plans of such renegotia in June. In the case of Intel, a possible conversion of subsidies to government shares could reduce the total amount of capital required from Washington as part of a potential transaction.
Ups and downs on the stock market
The concept of government investment in Intel was initially adopted positively by the market, Every August 14, it resulted in an increase in the company's shares by almost 9 percent. However, after the publication of Tuesday's Bloomberg report, Intel shares fell by more than 3 percent. On the same day, investor's moods improved the information about Softbank's investment in Intel shares worth $ 2 billion. This transaction is to bring a Japanese giant to a share of about 2 percent, making it the fifth largest shareholder of Intel.
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Despite these events, investors remain cautious. Experts indicate that the takeover of some shares by the US government could be another step in the strategic policy of Donald Trump, aimed at building national champions in key industries, such as semiconductors.
However, critics emphasize that Intel problems go beyond financial issues, and government support may not be sufficient to restore the company's former position.
Meeting at the White House and Intel's vision
In recent weeks, investors' attention has been attracted by the meeting of the General Director of Intel, Lip-Boy Tana, with the US President Donald Trump. Despite earlier tensions related to the Chinese connections of the head of the company, Trump changed his mind after the conversation, recognizing him as a person with an “amazing story”.
So far, it has not been revealed whether the government's participation in Intel was discussed during this meeting.
